Individuals who manage discount health care programs, including selling discount cards for health care services to members, must be registered as a Health Care Program Operator with the Texas Department of Insurance (TDI). A $50,000 Discount Health Care Program Operator Bond is required to be approved for and to maintain a program operator license.
Jet Insurance Company provides the Discount Health Care Program Operator Bond to act as financial assurance for the Texas Department of Insurance that the operator will follow all license and program regulations. If a violation is committed, the surety bond may be used to cover any financial damages incurred by the TDI themselves and any other damaged party. Click the button above to get your bond!
At Jet, the cost of the Discount Health Care Program Operator Bond is a small percentage of the $50,000 bond limit and is based on a soft credit check of the applicant. As shown in the chart below, preferred credit tier applicants can qualify for a $500 annual premium payment or can pay just $50 a month.
Our monthly payment plan is a great option if you are looking to keep your license in good standing with the Texas Department of Insurance for the long run. As long as payments are continuously made, your bond will remain active until cancellation is sought.
Jet’s application for the Discount Health Care Program Operator Bond is fully online which means it can be completed from the comfort of your home! Some general information will be needed such as your contact details and social security number for a soft credit check. No need to worry though. Jet only runs a soft check, meaning it won’t affect your score. Once your application has been submitted, you will receive approved rates for both monthly and one-year plans. Simply choose the best option for you and fulfill the payment. You will then receive a copy of your receipt and bond form instantly.
Jet can file your surety bond for you at no extra cost! However, if you would prefer to file the bond form yourself, the option to do so may be selected during checkout with Jet. The original singed and sealed Discount Health Care Program Operator Bond, along with any other required license paperwork, must be submitted to the Texas Department of Insurance at the following mailing address:
Texas Department of Insurance
Agent and Adjuster Licensing, MC: CO AAL
PO Box 12069
Austin, TX 78711
As for registration paperwork, take a look at the TDI’s Discount Health Care Program Operator Forms webpage.
Your program operator license must be renewed with the Texas Department of Insurance each year. Therefore, your Discount Health Care Program Operator Bond will require an annual renewal as well. However, if you are enrolled in Jet’s monthly plan, your bond won’t require renewal. As long as monthly payments are made, your bond will remain active. If you purchased a one-year bond term upfront, Jet will send you a renewal invoice prior to your official bond term expiration date via mail and email. All we require is that you fulfill the standard payment due and your bond will be all set with the TDI for another term.
The Discount Health Care Program Operator Bond is up for cancellation at any time with Jet. To cancel, simply send a written request to us at [email protected]. Once received, we will notify the Texas Department of Insurance of your bonds termination. The liability of the bond is then released by the TDI within 30 days of receiving notice.
If you are a part of our monthly payment plan, you will be required to make one last payment during the 30-day liability period as your bond is technically still active during this time. All future payments will cease and your bond will be officially cancelled once this step has been taken care of.
It is important to note that even with the Discount Health Care Program Operator Bond being cancelled, the Texas Department of Insurance may still file a claim on the surety bond for one year following its termination. A claim may also be filed by the TDI in the year following the expiration of a program operator’s license.
According to the Texas Department of Insurance, discount health care programs provide members with discount health services from participating physicians and providers (this program is not to be confused with insurance). Once enrolled, the member is responsible for paying the full discounted cost of the medical service and/or treatment.
The program operator is in charge of managing the discount health care program and contracts with providers and provider networks. The licensee also determines the amount to be charged for a discounted health care service or treatment to members of the program.
When acting as a program operator, you are expected to follow all license regulations pursuant to Title 5, Chapter 562, as well as Title 21, Chapter 7001, and Chapter 7002 of the Texas Insurance Code. Failure to comply may lead to a loss of license (suspension or permanent revocation), civil penalties, and/or a bond claim.
A claim on the Discount Health Care Program Operator Bond is pretty rare due to the Texas Department of Insurance’s extensive investigation and hearing process for official complaints. However, if a complaint does occur, it is typically caused by negligent or fraudulent activity such as the operator misrepresenting the discounted price ranges offered by the program or failing to properly refund past customers for unused membership fees. As for complaints that are found to be valid, the program operator will be required to attend a hearing to discuss the transgression and possible penalties with the TDI. In cases where the TDI rules in favor of the claimant, the licensee will be expected to reimburse the damaged party for any financial losses incurred. Failing to make restitution can result in the Texas Department of Insurance filing a claim on your bond on behalf of the claimant.
If you receive an official claim notice from the Texas Department of Insurance, contact Jet as soon as possible. Our team will ask that you provide us with all available information and documentation regarding the bond claim. These details will be used for our own review and investigation of the alleged license violation.
Per the Discount Health Care Program Operator Bond form, Jet is legally obligated to payout justified claims up to the $50,000 bond limit. Claim payouts will never exceed the exact amount of the bond. You, the license program operator, are responsible for your actions and thus are expected to reimburse Jet for the claim payout that was made on behalf of your transgression. Failure to fulfill this obligation will lead to future hardship obtaining a surety bond within the State of Texas.